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12 OYS: Georgia to pay for overdraft fees due to tax refund computer glitch

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The state of Georgia will handle any bank fees caused by the computer glitch that took tax refunds out of people's accounts. (January 26, 2011 / WRDW-TV)

News 12 at 6 o'clock / Wednesday, January 26, 2011

AUGUSTA, Ga. -- The future of tax preparations are electronic. Even now, many returns are prepared and filed online.

And that's the problem. A computer error has been blamed for a mistake that miscalculated the amount of tax refunds to more than 30,000 Georgia taxpayers.

The state took the money back from bank accounts. Some people called H&R Block in Augusta.

"The sense I get is most of them are in the stage of, 'What's going on?' kind of an attitude," said District Manager Steve Harvey. "The ones more panicky are the ones that saw the money, spent it, and now they're getting notices from the bank of insufficient funds, so they're upset, and rightfully so."

The state said today they overpaid by about $630,000. So the state stopped payment, unaware the money had already made it to many accounts.

"It's just very frustrating as a wife with a one-income household and a two-year old daughter," said taxpayer Erin Oliver. "It creates a lot of frustration."

The state says the problem has since been corrected. They're working on putting the money back.

Harvey says the situation should make us all more aware of what government can and can't do.

"The handful of people that it did affect, they may be cautious in thinking the government can just go into their checking account without their knowledge and take their money back," he said.


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